Andhra Bank logs net loss of Rs 532 cr in Q3 on NPA woes

Public sector Andhra Bank reported a net loss of Rs 532.02 crore in the third quarter ended December of this fiscal due to higher bad loan provisioning.

The bank had made a net profit of Rs 56.70 crore in corresponding October-December period of 2016-17.

Sequentially, it widened the loss against Rs 385.11 crore loss in the second quarter ended September during this fiscal.

Total income of the bank increased slightly to Rs 5,093.43 crore in the December quarter, as against Rs 5,012.86 crore in the year-ago quarter, the bank said in a regulatory filing.

Bank's asset quality worsened during the quarter with gross non-performing assets rising to 14.26 per cent of the gross advances at end-December 2017, from 11.88 per cent as on December 31, 2016.

Net NPAs too shot up to 7.72 per cent during the three months to December from 6.98 per cent.

A higher NPA ratio resulted in higher reserve money as provisioning cover for bad loans, at Rs 1,744.99 crore, that erode into the profits.

The bank had made NPA provisions of Rs 803.91 crore in the third quarter of 2016-17.

Andhra Bank said as per the provisioning norms under insolvency process, it was required to make additional provision for eight accounts under Insolvency and Bankruptcy Code to the tune of Rs 659.06 crore that has to be provided fully by March 2018, and it has provided for Rs 419.08 crore (proportionately) till December quarter.